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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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Speaker 2: are the stories we're following today.

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Speaker 3: Karen, we begin with new geopolitical tensions on the high seas.

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Speaker 3: The US has seized a sanctioned oil tanker off the

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Speaker 3: coast of Venezuela. It is an escalation of tensions that

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Speaker 3: have focused on deadly military strikes on suspected drug smuggling

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Speaker 3: boats coming out of the oil rich country. President Trump

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Speaker 3: confirmed the move in comments from the White House.

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Speaker 4: We've just seized a tanker on the coast of VENEZUELA

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Speaker 4: large tanker, very large, largest one ever seised, extent and

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Speaker 4: other things are happening.

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Speaker 3: And following President Trump's remarks, Attorney General Pam Bondi posted

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Speaker 3: a video on x of heavily armed forces dropping onto

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Speaker 3: the ship's deck from a black Hawk helicopter. Bloomberg Stephen

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Speaker 3: Stepchinsky reports the US concluded this vessel was headed for Cuba.

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Speaker 5: This is a very large Crewe carrier. Trump was correct.

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Speaker 5: It is big, two million barrels of oil, and it's

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Speaker 5: abnormal to send carriers this large to Cuba. So where

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Speaker 5: was its actual destination. It's still unclear was actually going

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Speaker 5: to China, but either way, the Trump administration did decide

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Speaker 5: to do this, saying that because the ship was already sanctioned,

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Speaker 5: we have the authority to board it and take it.

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Speaker 3: Bloomberg Steven Stebschinski reports. The Venezuelan government says the seizure

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Speaker 3: shows US aggression against the country has always been about

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Speaker 3: its natural resources. President Trump is suggesting the US should

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Speaker 3: keep the oil.

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Speaker 2: Now, Nathan, let's get the latest on efforts to end

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Speaker 2: the war in Ukraine. A coalition of more than thirty countries.

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Speaker 2: We'll hold a virtual meeting on the latest peace proposal.

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Speaker 2: Ukraine sent its revised plan to the US overnight after

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Speaker 2: President Trump held a call with the leaders of France,

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Speaker 2: Germany and the UK.

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Speaker 4: We discussed Ukraine in pretty strong words, and we'll see

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Speaker 4: what happened.

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Speaker 6: So we were waiting to hear our answers.

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Speaker 2: President Trump says it's time for the war to get settled.

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Speaker 2: To Bloomberg's Oliver Kirk reports, three documents are under discussion.

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Speaker 2: The first is a twenty point framework for peace with Russia.

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Speaker 7: European leaders are trying to urge Donald Trump to come

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Speaker 7: to Europe potentially this weekend to have discussions. Trump said

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Speaker 7: that that's potentially on the table, but really he wants

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Speaker 7: to have more security that there's actual progress being made

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Speaker 7: in the negotiations before agreeing to do that. Yesterday also

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Speaker 7: we had President Zelenski and a number of top Ukrainian

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Speaker 7: officials meeting with Larry Fink, the CEO of Black Rock,

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Speaker 7: meeting with Scott besse at the US Treasury Secretary Jared Kushner,

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Speaker 7: who seems to be involved in just about everything these days,

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Speaker 7: to talk about the reconstruction of Ukraine. And that is

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Speaker 7: the second document is about reconstruction, and the third document

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Speaker 7: is the third and is probably the most contentious. This

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Speaker 7: is all about detailing what are the security guarantees going

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Speaker 7: forward for Ukraine.

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Speaker 2: And Bloomberg's Oliver Kuirk reports it remains unclear whether Russian

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Speaker 2: President Vladimir Putin will agree to a deal. After talks

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Speaker 2: last week in Moscow. The Kremlin said some purpose on

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Speaker 2: the table were acceptable, but it rejected others.

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Speaker 3: Well, let's turn to the markets now, Karen. Futures are

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Speaker 3: lower following yesterday's FED fueled rally on Wall Street. The

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Speaker 3: main culprit disappointing earnings from Oracle. Those shares are down

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Speaker 3: more than eleven percent. Revenue and operating income fell short

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Speaker 3: of analyst estaments. The company's fate is deeply tied to

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Speaker 3: the artificial intelligence boom, and it raised its AI spending forecast,

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Speaker 3: rekindling concerns over tech shares expensive valuations. Annabelle Droolers covers

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Speaker 3: Oracle for Bloomberg, investors.

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Speaker 8: Are already quite cautious, and you can see that drop

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Speaker 8: there in the stock over the last few months. But

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Speaker 8: we have seen about it a drop of a third

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Speaker 8: since the stock hit it's all time high back in September,

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Speaker 8: and certainly seems like those fears haven't mitilated at all

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Speaker 8: because you're seeing Oracle, they're very much under pressure, and

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Speaker 8: those questions really about the exposure that Oracle has to

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Speaker 8: open AI's business, in.

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Speaker 3: Particular Bloomberg's andabell Droolers says Oracle now expects capital expenditures

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Speaker 3: to reach about fifty billion dollars. That's about fifteen billion

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Speaker 3: more than and it's September forecast.

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Speaker 2: Well, Nathan, the Oracle disappointment is taking the shine off

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Speaker 2: the market's best day on a FED decision since March,

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Speaker 2: the s and P five hundred row seven tenths of

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Speaker 2: up percent.

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Speaker 9: The Fed delivered a widely.

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Speaker 2: Anticipated quarter point interest rate cut, but policymakers are increasingly

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Speaker 2: split on the path ahead, and that vote for the

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Speaker 2: cut was nine to three.

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Speaker 9: Fetchier J. Powell says, the Central Bank has a tough mandate.

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Speaker 9: It's a close call.

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Speaker 10: We have to make decisions, and you know, we always

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Speaker 10: hope that the data will give us a clear read.

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Speaker 10: But in this situation, you have competing If you look

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Speaker 10: at if you look through the SEP, you'll see that

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Speaker 10: a very large number of participants agree that risks are

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Speaker 10: to the upside for unemployment and to the upside for inflation.

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Speaker 10: So what do you do. You've got one tool. You

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Speaker 10: can't do two things at once.

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Speaker 9: The results from J.

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Speaker 2: Powell and the Fed mark the first time since twenty nineteen.

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Speaker 2: That's three officials voted against a policy decision, with descents

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Speaker 2: on both ends of the policy spectrum.

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Speaker 3: And reaction continues to pour into the decision. Karen Jim Bianco,

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Speaker 3: president and founder of Biancre Research, says he would have

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Speaker 3: liked to see more descents.

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Speaker 11: I was hoping for a seven and five vote. I

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Speaker 11: was hoping for a FED that was more divided, that

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Speaker 11: was more independent, that was going to send a message

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Speaker 11: to the administration. You could put a guy in that

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Speaker 11: wants to go to one percent, but he's not going

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Speaker 11: to bully us to cut rates next year. Just because

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Speaker 11: he's the FED chairman. They kind of left the door open.

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Speaker 11: I think that the FED can be bullied by the

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Speaker 11: next FED chairman to do the bidding.

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Speaker 9: Of President Trump.

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Speaker 3: That's Jim Bianco Bianco Research. Just two policy makers, Kansas

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Speaker 3: City FED President Jeff Schmid and Chicago's Austin Goldsby dissented

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Speaker 3: in favor of leaving rates unchanged. The other descent was

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Speaker 3: from Governor Stephen Myron, who continued to call for a

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Speaker 3: larger rate reduction.

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Speaker 2: Well in Company News this morning, Nathan, the battle for

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Speaker 2: Warner Brothers Discovery is carving up the country along political lines,

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Speaker 2: and we get that each He also with Bloomberg's John Tucker,

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Speaker 2: John good Morning, and Karen.

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Speaker 12: Few mergers in recent memory have been as polarizing as

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Speaker 12: the battle for Warner Brothers. In Republican circles, he has

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Speaker 12: become fashionable to root against Netflix and for Paramount's bid.

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Speaker 12: Paramount is run by David Ellison was close ties to

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Speaker 12: the White House and his bid for Warner Brothers is

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Speaker 12: backed by Jared Kushner, son in law off President Trump,

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Speaker 12: and the President himself had a drama yesterday. That's when

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Speaker 12: he said any deal for Warner Brothers should include the

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Speaker 12: sale of CNN.

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Speaker 6: I don't think the people that are running that company

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Speaker 6: right now and running CNN, which is a very dishonest

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Speaker 6: group of people, I don't think that should be allowed

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Speaker 6: to continue.

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Speaker 12: Some prominent Democrats, on the other hand, are voicing objections

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Speaker 12: to the paramount effort, crying foul over the twenty four

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Speaker 12: billion dollars that's coming from Middle East sources, like many

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Speaker 12: in Hollywood. Democratic Senator Elizabeth Warren of Massachusetts would prefer

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Speaker 12: no sale at all. She called paramounts offer a five

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Speaker 12: alarm antitrust fire in New York. I'm John Tucker Bloomberg Radio.

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Speaker 13: John.

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Speaker 1: Thanks.

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Speaker 3: There's a change in the c suite at Coca Cola

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Speaker 3: this morning. CEO James Quincy is stepping down. He'll be

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Speaker 3: replaced at the end of March by Enrique Braun, Coke's

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Speaker 3: chief operating officer. Quincy assumed the CEO role in May

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Speaker 3: of twenty seventeen. Under his management, Coke shares rose more

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Speaker 3: than sixty percent, while the S and P five hundred

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Speaker 3: gained nearly one hundred and ninety percent over the same period.

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Speaker 2: And finally, Nathan, it took a while twenty five years.

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Speaker 2: In fact, Cisco, a Bellather stock of the dot com era,

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Speaker 2: has returned to a record after a quarter century, thanks

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Speaker 2: in part to the artificial intelligence spending. Boom shares closed

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Speaker 2: above eighty dollars yesterday, taking out a peak that stood

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Speaker 2: for more than twenty five years, and the stocks March

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Speaker 2: two thousand and high is viewed by many as the

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Speaker 2: height of the dot com bubble and mark the high

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Speaker 2: water mark for the tank heavy Nasdaq one hundred index

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Speaker 2: until late twenty fifteen. Time now for a look at

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Speaker 2: some of the other stories making it was in New

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Speaker 2: York and around the world, and for that were joined

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Speaker 2: by Bloomberg's Michael Barr.

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Speaker 9: Michael, good morning, Good morning, Karen.

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Speaker 13: The House has passed the Annual Defense Policy Bill, authorizing

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Speaker 13: nine hundred billion dollars depending on spending, but a little

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Speaker 13: noticed provision has drawn the ire of safety regulators. Inside

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Speaker 13: the three thousand page bill is a provision allowing for

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Speaker 13: waivers to let military helicopter training missions without collision avoidance

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Speaker 13: systems resume near Reagan National Airport. Jennifer Hammady, chair of

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Speaker 13: the NTSB, says the Safety Board was not consulted on

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Speaker 13: the bill's provision.

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Speaker 14: This section, to the lay reader is drafted to seemingly

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Speaker 14: enhance safety. I want to be very clear that it

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Speaker 14: is does not in any way enhance safety.

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Speaker 13: NTSB chair Jennifer Hummady says sixty seven people were killed

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Speaker 13: last January when an Army Blackhawk helicopter collide it with

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Speaker 13: a Regional in the crowded DC airspace. We're learning more

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Speaker 13: about the suspected gunmen in Tuesday's deadly shooting at Kentucky

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Speaker 13: State University. Officials identified him as forty eight year old

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Speaker 13: Jacob Lee Bard. Assistant police Chief Scott Tracy.

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Speaker 10: Mister Bard is a resident of Evansville, Indiana.

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Speaker 6: Our investigation has determined that mister Barn as a parent

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Speaker 6: of a Kentucky State University student.

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Speaker 13: The assistant Chief Tracy also says they have identified the

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Speaker 13: victim who died as nineteen year old to John Fox,

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Speaker 13: a student at the university. Another victim remains hospitalized in

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Speaker 13: intense of care. The Trump administration has approved sales valued

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Speaker 13: at six hundred and eighty six million dollars of technology

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Speaker 13: and equipment for Pakistan's F sixteen fighter jets to modernize

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Speaker 13: its fleet. The sale would boost into operability with US

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Speaker 13: forces and help extend the jets' service life through twenty forty.

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Speaker 13: Global News twenty four hours a day and whenever you

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Speaker 13: want it with Bloomberg Now. I'm Michael Barr, and this

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Speaker 13: is Bloomberg Karen.

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Speaker 9: Thanks Michael.

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Speaker 2: Time now for our Bloomberg Sports update, and for that

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Speaker 2: we bring in John Stashauer.

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Speaker 15: Thanks Aaron. The University of Michigan fired football coast Sharon

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Speaker 15: Moore for having an inappropriate relationship with a staff member,

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Speaker 15: and then Moore's day got even worse, so he ended

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Speaker 15: up in a county jail suspected an alleged assault. NBA

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Speaker 15: Cup Quarterfinals Oklahoma City by forty nine over Phoenix, and

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Speaker 15: the Spurs won easily over the Lakers. Those winning teams

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Speaker 15: advanced to the semifinals in Las Vegas. Been a rough

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Speaker 15: week for the Mets. Edwin Diaz left to sign with

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Speaker 15: the Dodgers. Peter Alonzo left to go to Baltimore. That's

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Speaker 15: a Bloomberg Sports update.

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Speaker 9: Stay with us. More from Bloomberg day Break coming up

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Speaker 9: after this.

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Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 1: and around the world on Bloomberg dot Com and the

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Speaker 1: Bloomberg Business Altum.

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Speaker 9: This is Bloomberg. Good morning.

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Speaker 3: I'm Nathan Hageran. As expected, the Federal Reserve delivered its

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Speaker 3: third quarter point interest rate cut in a row to

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Speaker 3: end the year, But the sense behind that decision or

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Speaker 3: pointing to an uncertain path ahead. FED Chair Jay Palell

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Speaker 3: says the Committee's trying to get the balance right.

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Speaker 10: This further normalization of our policy stance should help stabilize

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Speaker 10: the labor market while allowing inflation to resume its downward

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Speaker 10: trend toward two percent once the effects of tariffs have

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Speaker 10: passed through.

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Speaker 3: FED Chair Jay Powell at the post decision news conference

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Speaker 3: heard live on Bloomberg Radio. We're joined now by Jennifer Lee,

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Speaker 3: senior economist at BMO Capital Markets, and Jenna'd love to

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Speaker 3: get your reaction to this decision and the messaging we

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Speaker 3: heard from Chairman Powell on the upside risks to both

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Speaker 3: employment and inflation.

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Speaker 9: Good morning, Good mornings.

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Speaker 16: And thank you very much for having me on. You know,

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Speaker 16: when I first saw the press press statement, it was

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Speaker 16: like reading a book or watching a movie, was like

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Speaker 16: this plot twist all of a sudden, except it's not

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Speaker 16: a movie, it's not a book.

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Speaker 9: This is like real life.

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Speaker 16: And you know, I think the message that he was

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Speaker 16: trying to send during the press conference was how much

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Speaker 16: uncertainty there is? And you know, and and again emphasizing that, yes,

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Speaker 16: he did say it was a close call, but you know,

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Speaker 16: it doesn't sound like that to me. I think you

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Speaker 16: started downplaying how much dissension there was potentially in the committee.

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Speaker 3: Yeah, we did get three descents for the first time

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Speaker 3: since twenty nineteen on both sides, and some policymakers who

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Speaker 3: weren't voting saying they would have called for keeping rates

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Speaker 3: on hold as well. What does that signal about what

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Speaker 3: we could get next year?

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Speaker 16: So we are you know, we so much could happen.

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Speaker 16: And in terms of me right now, it was interesting,

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Speaker 16: how you know, we started off the year talking about

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Speaker 16: how dubbished all the central banks are, and now we're

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Speaker 16: ending the year talking about rape hikes. So I think

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Speaker 16: it's obviously it's still early to see what's going to

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Speaker 16: happen in the next twelve months. But you know, I

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Speaker 16: still think we're going to see rape cuts. Obviously, it's

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Speaker 16: not going to be in quick succession. It's not going

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Speaker 16: to be in fifty basis point moves as Governor Myron

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Speaker 16: had preferred. But you know, we're still sticking with our

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Speaker 16: call of you know, probably about another two or three cuts,

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Speaker 16: but spaced out, waiting to see how the data panet,

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Speaker 16: waiting to see how what happens with the job market.

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Speaker 16: Are we actually seeing job cuts?

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Speaker 11: You know?

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Speaker 16: One of the sass thing. What's going to happen on

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Speaker 16: the inflation front. You know, I still think inflation is

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Speaker 16: going to remain quite sticky, you know, and that's going

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Speaker 16: to prevent more, you know, a larger I guess, our

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Speaker 16: large number of rate cuts. So I think two or

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Speaker 16: three rate cuts. I think it's still quite reasonable right now.

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Speaker 3: Well, what's your view on the reliability of the data

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Speaker 3: since we have kind of holes in it due to

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Speaker 3: the government shutdown.

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Speaker 9: That's so that's a big question.

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Speaker 16: I mean, obviously, when we had the shutdown and then

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Speaker 16: everyone was hustled back to work and said to like

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Speaker 16: get those surveys out you know I would do. First

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Speaker 16: thing I was wondering is how reliable will the data be?

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Speaker 16: So I'm going to be interested to see how the

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Speaker 16: revisions are going to affair. We always see revisions anyway regardless,

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Speaker 16: but how big they will be will be interesting. So

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Speaker 16: I think this is because this is because of that

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Speaker 16: we have to wait at least a few more month

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Speaker 16: to see how the data fare, what the stats are saying,

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Speaker 16: how the revisions are going to show, visions are going

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Speaker 16: to show, and then that's how they're going to be

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Speaker 16: making the decision, because right now they can't make their

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Speaker 16: decision on data that they're questioning, you know, how reliable

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Speaker 16: they actually are.

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Speaker 9: I'm Karen Moscow.

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Speaker 3: And I'm Nathan Hager. Join us again tomorrow morning for

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